Impala Refining Services (IRS)

Impala Refining Services (IRS) was created in
July 1998 as a dedicated vehicle to house
the toll refining and metal concentrate
purchases built up by Implats. IRS is situated
in Springs some 35 kilometres east of
Johannesburg. IRS provides smelting and
refining services through offtake agreements
with Group companies (except Impala) and
third parties.

Operational review 2015

Business summary

Main areas of activity

Provides smelting and refining services through offtake agreements with Group companies (except Impala) and third parties

The IRS model

The IRS model mitigates Implats’ exposure to mining risk by using Impala’s excess smelting and refining capacity. At the same time this business also enables junior operators to exploit smaller PGM deposits.

Typical IRS products include:

flotation concentrates from Marula, Mimosa, Two Rivers and other small mining contracts;

furnace matte from Zimplats; and

selected base metal residues and other secondary materials.

IRS enters into either metal purchase agreements or toll refining agreements, or a combination of the two.

In metal purchase agreements a percentage of the contained value (allowing for Impala’s cost and a profit margin) is paid after an agreed processing period. In toll refining agreements, IRS charges the client a smelting, refining and handling fee and returns the metal to the client after an agreed processing period. Impala, in turn, charges IRS a market-related fee for its expertise and the use of its processing facilities.

With the exception of mine-to-market operations, IRS has little or no control over volumes received from either third party or toll treatment contracts.

IRS production

000 oz

2015

2014

2013

2012

2011

Zimplats

216

226

180

185

175

Marula

71

77

71

63

71

Mimosa

113

103

97

100

99

Two Rivers

168

168

157

145

142

Mine-to-market operations

568

575

505

493

487

Third-party purchases, recycling and toll

133

192

368

205

408

Grand total

701

767

873

698

895

OUTLOOK

Access to spare smelting and refining capacity from Impala positions IRS well to process additional material from new customers. Opportunities in this regard are evaluated on an ongoing basis.